PayPal Holdings Inc. on Monday announced it had beat Wall Street estimates for its third quarter revenue and profits, thanks to a surge in digital payments.
The online payment specialist processed a total of $247 billion in payments in the third quarter, up 36 per cent from the same period last year.
PayPal also added 15.2 million net new active customers in that time, as the global pandemic meant shoppers were forced to stay home and more businesses expanded their operations online.
The company said it is now on track to process just less than $1 trillion in payments this year.
While some lockdowns eased for many of the firm’s regions in the third quarter, PayPal said the momentum for digital payments continued, adding that it recorded its highest daily payments volume level in October.
“The world continues to accelerate towards a digital first economy that drove an incredibly strong quarter for us,” PayPal chief executive Dan Schulman said.
Revenue rose around 25 per cent to $5.46 billion for the quarter ending September 30, compared with analysts’ average estimate of $5.43 billion.
Looking ahead, Schulman told analysts the company was giving a more prudent estimate for the fourth quarter, partly due to the pandemic and its impact on the global economy and because of Tuesday’s US presidential election and the possibility of ensuing social unrest.
For the final quarter, PayPal said it expects adjusted profit to grow in a range of 17 per cent to 19 per cent, beneath analysts’ estimated growth of around 24 per cent, according to IBES data from Refinitiv.